Not Just Literacy: Some Control Required

Control. Control. You must learn control. – Yoda, Star Wars Episode V: The Empire Strikes Back Approximately 57% of Americans are financially literate, typically measured by answering simple financial literacy questions correctly. The work of Anna Maria Lusardi and her colleagues have demonstrated the woeful state of the world related to financial knowledge and education in the United States and around the world. Often, this group of researchers measures financial literacy with a few questions[…]

The Value of Client Behavioral Management

All of the studies and resulting data that have looked at the issue appear to agree that client behavioral management is one of—if not the most—important functions of financial advisors. In one of the seminal research studies—although not technically an inquiry into the role of financial advisors in relation to client behavioral management—the researchers concluded that of all the activities undertaken by large corporate pension fund managers, strategic portfolio allocation accounted for on average 93.6% of[…]

The Tasks of Successful Wealth Accumulators

What does it take to build wealth over time? I was fortunate to work with Dr. John Grable and Michelle Kruger from the University of Georgia’s financial planning performance lab on a research paper examining that topic, and the research was featured in the January edition of the Journal of Financial Service Professionals. The study used DataPoints’ proprietary list of financial tasks, which is based in part on the behaviors and habits documented in the 40+ years[…]

Advisors: Role Expansion to Coaching

Family/marital issues, health issues, grief, religion: just a few of the non-financial topics that advisors work through with their clients. A few years ago, a large-scale study of advisors yielded a wealth of information on the evolving role of financial advisors as coaches (Dubofsky & Sussman, 2009). The research, which included approximately 1,400 advisors associated with either the FPA or CFP board, highlighted the topics, challenges, and critical incidents faced by advisors related to non-financial issues.[…]